Kaamos: Uncertified Buildings Are Falling Behind in Already Fierce Commercial Real Estate Competition

Kaamos Real Estate has systematically modernized its commercial real estate portfolio, resulting in all of the company's office buildings receiving an international environmental certificate, either BREEAM or LEED. According to the company's management, this is not a matter of isolated investments but a clear sign of changing practices in the commercial real estate market.

Kaamos's portfolio now includes the Avala Quarter office building at LEED Gold level, Tammsaare Business Center at BREEAM Very Good level, and Endla Business Building and Tatari Business Building at BREEAM Good level. All buildings are also equipped with corresponding markings that indicate compliance with environmental certificates.

Kaamos Real Estate CEO Taimo Murer says that obtaining such certificates is no longer a matter of prestige but a prerequisite for sustainable business operations. "A few years ago, BREEAM or LEED could mean added value. Today, it is often a minimum requirement for clients who follow sustainability principles to even come to the negotiating table," explains Murer. According to him, the local business environment has also changed, with clients increasingly asking about buildings' energy classes, ventilation system types, or water and waste management solutions. "This is becoming an increasingly influential decision-making criterion," says Murer.

Certification requires buildings to demonstrate compliance in several areas, such as building energy use, accessibility, indoor climate, and so on. Assessing these properties and particularly improving them means considerable investments. Nevertheless, their implementation is becoming increasingly less optional.

The market situation in Tallinn, where supply exceeds demand, forces real estate owners to position themselves more clearly.

According to Kaamos, the certificate provides tenants with indirect but measurable benefits. More efficient energy use and indoor climate reduce overhead costs and improve employee productivity. What is becoming even more important is the fact that many companies' own sustainability strategies exclude the use of non-certified spaces.

In Murer's view, compliance with standards marks the beginning of a long-term shift in direction in the Estonian real estate market. "In the coming years, the question will no longer be whether a building is certified. The question will be at what level and to what extent," he predicts.